Correlation Between Xp and Global Blockchain
Can any of the company-specific risk be diversified away by investing in both Xp and Global Blockchain at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xp and Global Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Global Blockchain Acquisition, you can compare the effects of market volatilities on Xp and Global Blockchain and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xp with a short position of Global Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Global Blockchain.
Diversification Opportunities for Xp and Global Blockchain
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xp and Global is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc and Global Blockchain Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blockchain and Xp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xp Inc are associated (or correlated) with Global Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blockchain has no effect on the direction of Xp i.e., Xp and Global Blockchain go up and down completely randomly.
Pair Corralation between Xp and Global Blockchain
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Global Blockchain. In addition to that, Xp is 3.5 times more volatile than Global Blockchain Acquisition. It trades about -0.04 of its total potential returns per unit of risk. Global Blockchain Acquisition is currently generating about 0.03 per unit of volatility. If you would invest 1,042 in Global Blockchain Acquisition on August 26, 2024 and sell it today you would earn a total of 68.00 from holding Global Blockchain Acquisition or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. Global Blockchain Acquisition
Performance |
| Timeline |
| Xp Inc |
| Global Blockchain |
Xp and Global Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and Global Blockchain
The main advantage of trading using opposite Xp and Global Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp position performs unexpectedly, Global Blockchain can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Global Blockchain will offset losses from the drop in Global Blockchain's long position.| Xp vs. Visa Class A | Xp vs. Diamond Hill Investment | Xp vs. Distoken Acquisition | Xp vs. AllianceBernstein Holding LP |
| Global Blockchain vs. Embrace Change Acquisition | Global Blockchain vs. Bannix Acquisition Corp | Global Blockchain vs. TransAKT | Global Blockchain vs. China Health Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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